I ran Strat undead side today on my warrior Velenne-Wild Growth for my Swordsmithing spec quest but the Black Guard Swordsmith didn’t drop the Insignia of the Black Guard needed for the quest. Keep in mind this is the newer SoD version of the quest (quest id: 85700) that isn’t exclusive with the other weaponsmithing specs.
EDIT: nvm I was able to loot it in another run. It just took someone else looting the body first for it to become lootable by me.